Friday, October 27, 2006

Houses cost too much!

House Price / Income Ratio 60% Worse Since 1970

The ratio of house prices to income has shot up 60% since 1970, according to the Alliance Trust Research Centre. The ratio has worsened most in London, East Anglia and the South West, where it increased by 66%, 65% and 63% respectively. London is the least affordable region for today’s first time buyers. House prices in the capital are now 4.4 times income, against 2.6 times in 1970. The South East, where the ratio has climbed to 4.3 times income from 2.7 times 35 years ago, is the second least affordable region.

Posted by bufferbear @ 02:22 PM (675 views)
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8 thoughts on “Houses cost too much!

  • Looking at the graph in that report, the average salary seems to now be £50k.. explaining how they think house prices in the capital are only 4.4 times income.

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  • It would be interesting to know how the ‘median’ salary compares to the ‘median’ house price in London. I’m always wary when people use “average values” in any evaluation, as they can be so misleading. Yes, there are some ridiculos salaries paid out in London, but to suggest that your average Joe on the street is earning £50k is a bit far fetched – but hey, maybe I’m wrong and the streets of London really are paved with gold.

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  • little professor says:

    “It means that in the most expensive area, London, buyers may have to pay 4.4 times their annual salary to get on the property ladder, says Alliance Trust.”

    What planet are they on? Do they think the average house in London costs £100k?

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  • Let us face it.
    Labour have won the heart of electors “the majority of them are home owners” during the past ten years.
    Labour have been elected 3 times only by home owners, which electing Labour, meant to them, maximising their prophits.
    Poor young people who are starting their life.
    They were immediately faced with a huge bill to pay, as they started their life.
    This bill is the billions of pounds which made every home owner, during the past ten years, a millionaire.

    Thank’s to labour…

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  • Londoners do get paid more for the same job than anywhere else in the country. A receptionist can make 25 grand a year. That’s more than a nurse or teacher in scotland or actually anywhere so 50 grand average maybe isn’t too far off the mark. There are also people on lower page salaries who will tolerate a few years of poverty as they work their way up the ladder to the much larger salaries.

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  • I heard on the radio today that the average salary for a male worker in the City (im guessing within the Financial sector) has just risen above £100K, whilst a womens in the same sector averages £50K.

    But I can assure you that the average salary in London is nothing like £50K. Maybe £30K+

    And I would suggest that the avearge house prices here are far and away above 4.4 times earnings!!!

    Whatever predictions and projections are given by the VIs, they have all been said before. Sounds just like 1989 to me.

    No HPC yet does not mean no HPC ever!

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  • Statistics are great,
    Give me some numbers, I’ll draw you a graph and make it say what you want. 🙂
    The goverment & VI’s have got this to an artform..

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